ANJL Warns Ban on Legal Betting Operators Could Double Brazil’s Illegal Market

The National Association of Games and Lotteries (ANJL) believes the decision to ban online casino products from betting companies approved in Brazil would likely have a substantial impact on the proportion of the illegal market. A technical study commissioned by the association indicates that the percentage of wagers taken on non-authorized sites might increase from the current 41% to up to 82%.

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The forecast follows the federal government’s move to further limit online gambling. ANJL’s research suggests that the ability of certain websites to operate without authorization may be a barrier to migration of consumers from regulated operators. The association has discovered an average of 13.7 new illegal betting websites every day between June and August 2026.

More Than 6,400 Illegal Domains Identified

The study also illustrates the size of the illegal online gambling industry. Over the course of the monitoring period, from September 11 to 18, ANJL detected 6,409 illegal betting websites that were active and accessible for players.

ANJL president Plínio Lemos Jorge said the numbers reflect the possible repercussions of not allowing licensed operators, as users might begin to flock to sites outside Brazil’s regulatory regime. Many of these platforms are located abroad and don’t pay taxes in Brazil, he said.

“Our study showed that, among sites located outside the national scope, 55.8% use a distribution network that hides their original hosting location, and 98.3% of the domains are outside the ‘.br’ extension.”

Jorge added: “In other words, everything that is currently prohibited to ensure the well-being and protection of bettors and their money would remain widely accessible.”

ANJL Warns of Consumer and Tax Impacts

The association also says the limits would impact over 25 million folks who are presently registered with licensed online betting sites. A change to unlicensed operators may lead to lower taxation revenue and fewer consumer safeguards in the assessment.

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The impact of this could be especially harmful to vulnerable groups, as users will still continue to wager if licensed platforms are not allowed, Jorge said.

“In other words, Brazil loses in every sense. Millions of people will not stop gambling. They will simply start accessing these sites, which do not pay a single cent in taxes.”

He continued: “The most vulnerable social groups, which are precisely those the federal government wants to protect, will be even less protected.”

Debate Over Regulated and Illegal Markets

The ANJL president said that some of the responsible gambling measures not available in Brazil’s regulated system, such as measures with the goal of limiting access for beneficiaries of social programs, are also missing on unauthorized platforms.

“After all, these platforms do not offer any mechanism to protect financial or mental health, such as blocking beneficiaries of social programs or self-exclusion tools.”

The ANJL’s forecasts coincide with a current debate on the future of the regulated betting market in Brazil. The association points out that the potential growth of the illegal betting market as a result of restrictions is not reflected in other studies of the sector, which have estimated the size of the illegal market at between 38% and 44%.

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Source: iGaming Brasil